Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The California Energy Crisis - Information & Forum -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (856)	8/15/2001 12:43:16 AM
From: Zeuspaul	Read Replies (1) \| Respond to of 1715

I do believe the rate structure might* have had a little bit to do with that.* Would you care to explain? In the pre1996 era the utilities were making $'s. The pre 1996 time frame is when the California energy commission projected the increase in future energy needs. Then with deregulation the retail rates were kept artificially high and the utilities continued making $'s. The utilities were making big bucks and there was a surplus of energy. The utilities/power producers wanted to bring the surplus down so rates would rise when retail rates went to market rates. The utilities didn't want to build more power plants because a surplus was not in their economic interest. So what is your logic? How did a high rate structure influence the utilities not to build power plants? How did the lure of market rate juice influence the power producers not to build power plants? Zeuspaul